Rupee may appreciate against US Dollar: Karvy

Karvy's report on rupee

Asian markets are trading on a mixed to negative note after the US markets closed flat at 1984.13 in Monday's trade. Mixed economic data from the US managed to sustain the markets at the current levels. US empire manufacturing survey came in higher at 27.54 against an expectation of 15.95; however industrial production and capacity utilization came in below expectation. SGX Nifty is trading on a negative note down by 20 points in early trade this morning. The US dollar index sustained to stay above the 84.00 but slipped to lower levels since the data yesterday evening. British pound is trading on a flat note in the international market at 1.6239 and a possibility of opening around 99.50 in the morning session. Euro has appreciated with respect to the dollar yesterday, trading at 1.2949 and indicating an opening of 79.35 in today's session.

In terms of currency, most of the Asian currencies are trading in an appreciating note owing to the weakness of the dollar. On the local front, the NDF 1M Rupee is trading on an appreciating note at 61.35 with a 20 paisa change from yesterday's close of 61.55 in the forward markets. Lots of economic data from the UK market today and could be highly volatile in today's session. Zews survey from Germany and EU, and PPI data from the US in the evening would also need to be watched out for.

In a nutshell, we expect the USDINR Pair's day movement could be towards the appreciating side. We see an opportunity in selling from higher levels.

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